BILL ANALYSIS

 

 

 

H.B. 1348

By: Menéndez

Defense & Veterans' Affairs

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Interested parties contend that current law does not adequately address the taxable status of manufactured aircraft brought into Texas for final fittings, customization, or preparation for delivery. H.B. 1348 seeks to clarify the status of such aircraft and certain related tangible personal property located inside a defense base development authority.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

H.B. 1348 amends the Local Government Code to specify that a commercial aircraft to be used as an instrumentality of commerce that is under construction inside a defense base development authority is presumed to be in interstate, international, or foreign commerce and not located in the state for longer than a temporary period for purposes of Tax Code provisions establishing the state's jurisdiction to tax real and tangible personal property located in the state for longer than a temporary period. The bill applies the same presumption to tangible personal property located inside the authority if the owner demonstrates to the chief appraiser for the appraisal district in which the authority is located that the owner intends to incorporate the property into or attach the property to such a commercial aircraft.

 

EFFECTIVE DATE

 

January 1, 2014.